Section 287 — Income Tax (Earnings and Pensions) Act 2003: Limit on exemption

Limit on exemption 287 1 If in the case of any change of residence the value of the exemption exceeds £8,000, section 271 (exemption of removal benefits and expenses) does not apply to the excess.

2 The value of the exemption is an amount equal to the sum of—

a the section 62 earnings, ... b the benefits code earnings (after taking account of section 64(2)(b) where otherwise an amount that falls within paragraph (a) would be included) , and c the Part 7A employment income 3 In this section “ the section 62 earnings ” means all earnings within section 62 (earnings) in respect of which section 271 would prevent liability to income tax from arising if this section were disregarded.

4 In this section “ the benefits code earnings ” means all earnings—

a which are treated as such under the benefits code (except earnings so treated under Chapter 7 of Part 3 (taxable benefits: loans)),

and b in respect of which section 271 would prevent liability to income tax from arising if this section were disregarded.

5 In the case of living accommodation, the amount that would be so treated is to be taken to be equal to— CE - D where— CE is the cash equivalent of the accommodation under Chapter 5 of Part 3 (taxable benefits: living accommodation) for the period in which the accommodation is provided (calculated as mentioned in section 103), and D is any amount deductible under section 364 (deductions where living accommodation provided).

6 In this section “ the Part 7A employment income ” means the amount in respect of which section 271 (when read with section 554P) would prevent liability to income tax arising if this section were to be disregarded.